Xiangdu: Succession of Entrepreneurial Spirit
(8 pages of text)
This case discusses the question of the inheritance of power and entrepreneurial spirit in the family run Xinjiang Yier High Technique Agriculture Company and its wine brand and subsidiary Xinjiang Xiangdu Winery Co. Ltd. (Xiangdu). In 1998, the company’s founder took her family to break new ground for growing grapes in the vast expanse of the Gobi Desert. In 2002, she founded Xiangdu, and the company’s focus gradually shifted from grape growing to wine making and upgrading the grape processing infrastructure. In June 2016, having reached age 65, the founder called a senior management meeting to discuss a number of challenges that Xiangdu was facing. After her departure, could Xiangdu continue to achieve great success? Should the founder fulfill her husband’s last wish to make Xiangdu a public company? How should Xiangdu move forward?
This case can be used in undergraduate and MBA courses to stimulate discussion on entrepreneurship, the succession of family businesses, and entrepreneurial orientation. It may be of particular interest to students in the first or second generations of family businesses and those who serve as managers in family businesses. Students explore issues related to the succession and development of a family business. After completion of this case, students will be able to
- understand entrepreneurship, entrepreneurial orientation, and the related succession issues;
- explore how the entrepreneurs who founded family businesses consider and select successors;
- compare family management with management by professionals; and
- discuss whether family businesses and wine companies in China should go public.
Accommodation & Food Services,
Agriculture, Forestry, Fishing and Hunting
China, Large, 2016
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